There are a lot new traders joining the band-wagon on forex trading. Some have experience in stocks or options trading, some are totally new to this. No matter how experience you are as a trader there are still a lot of traders searching for the secrets of successful forex traders who make millions. Hoping to know their secrets and model them so they can be successful too. Here I am going to share with you the leaked secrets of successful forex traders.
Leaked Secret #1: Timing in Forex Trading
Traders sometime can sense there might have a trading opportunity. But the deciding factors of a profit trade depend on knowing exactly when to enter. Unfortunately 99% of the traders loose the plot by timing their entry improperly. Either they are too early or they are too late both entry will result them to cut loss early or cutting loss too late. With proper entry timing it will help you to make profit and not break it.
Leaked Secret #2: Use Support and Resistance
If you are stocks trader switching to try forex trading, please avoid using the same principal of “buy low, sell high” in forex market. You will be “squashed” to death. To trade in forex market you need to use the old but solid theory of Support and Resistance. Let me explain just in case you do not understand or know what is that.
A support line is drawn at a level at the price which is a historically tested price at which traders intervene and buy once it touches that level. The more times this price is tested, the more concrete the price will be as “psychologically” the market support price.
A resistance level in inverse of support level. The resistance line will be drawn at the level which the price were resisted from moving any higher. Same as support, the more the price has been tested and resisted, the more reliable the price will be.
Once the price breaks the support level and trade below it, trader can go with Short position. The opposite apply for resistance.
Leaked Secret #3: It Take Guts to Make Money
Whether you are trading stocks or forex, it really takes guts to make money. Have you ever heard of traders misses the big rally sitting on the sideline waiting for a retracement so they can enter it? Or how often have you heard of traders loses a lot and decided to stay away from the market for good at the same time telling others to do so?
How to avoid all these? I will advise to stay away from the majority losing crowds and mix a lot with the minority winners. I know this is cruel but this is how the trading markets works. Most important is to practice your trading methods or strategies so you have confident. Also trade with what you can afford to lose first can make your mind clearer.
Most people hate to lose and if you are seeking a 100% sure win strategy then good luck to you. All professional successful forex traders know that it is impossible to have 100% wins. Their winning secrets are practice, learn and keep learning.